A digital bank is the most convenient way to open and operate a bank account in these times. A digital bank is paperless, branchless and signatureless. The first digital bank opened by an account holder comes with several benefits: instant account opening to the convenience of conducting banking practices with just a few taps. New technology ensures safety and privacy for both account holders as well as the bank.
Digital banks are the banks of the future, and younger generations are rapidly preferring fully digital banking, and banking transactions have actually been found to be increasing several times over with the facility of digital banking. Digital banks are virtual, and people no longer prefer to go to a bank for banking activities.
Like youth in most countries, the younger generation of Kuwaitis prefer digital modes of banking and will only open an account when they are satisfied that the entire experience is digital and they can conduct the entire process of banking from the comfort of their mobile phones. They are very tech-savvy, and they are in the process of mastering the online banking process,
A plethora of benefits
The benefits an account holder experiences from his or her first digital bank are manifold. Not only is account opening easy, but other banking practices such as loan applications, bill payments, complicated banking transactions, fund transfers, fund receipts are also made extremely comfortable and convenient. The other benefits are cash rewards in the form of cashbacks, discounts and promos as online retailers, airlines, hospitality and other service providers find it easy and convenient to do business with digital banks. Payment schedules are fixed, and there is no hassle of following up on payments. They happen automatically within the stipulated time period.
There are also conveniences of biometric security, and account holders can just take a selfie or scan their face for authentication. This also facilitates fast account opening and eliminates the older security practice of sending OTP (one-time password) by SMS for each transaction.
There are ITM facilities that allow customers to make video calls with bank officials, eliminating the need to go to a bank. This facility is extremely helpful for urgent communication with bank officials.
The offer of the first digital bank came from the National Bank of Kuwait when a survey back in 2016 revealed that 89% bank account holders would switch accounts to their first digital bank and that there would be a sharp increase in online purchases that would be good for the economy in general. Recent trends have confirmed this prediction, and the overall growth of online business with the platform of digital banking is ample proof of the popularity of digital banking.
The Covid 19 pandemic with periodic lockdowns has amply demonstrated the convenience of digital banks, which proved to be lifesavers in many ways. Digital banks and online stores helped save the day with purchases and crucial transactions being done from the convenience of home, and mostly there was no need forcash at all. In addition to these conveniences, account holders continue to receive the benefits from online purchases, bill payments and other banking transactions. Banks also benefit from digital banking. New technologies like cloud computing, artificial intelligence, and blockchain enable banks to allow franchisees to manage and fund loans to customers. Banks need not keep cumbersome client records. These technologies do a virtual background check of all persons and businesses seeking finance in terms of loans, and their funds are more secure than ever before.